IUM Module User Guide | FernSpeed
Release 2026.2

Oracle NetSuite Inventory Usage Management

Automate inventory deduction from POS sales, track precise ingredient costs, and maintain financial accuracy with the IUM 2026.2 Release.

With the IUM 2026.2 Release, every sale at your POS instantly updates your inventory down to the last gram. Stop guessing your margins and start seeing the real-time profitability of every item you sell.

Eliminate Waste

Real-time ingredient tracking catches leaks before they sink your budget.

Audit-Ready Books

Financial accuracy is baked in, saving you hours of manual reconciliation.

Master Your COGS

Know exactly what your sold items cost today—not what they cost last month.

Module Overview

See Beyond the Sale: From Menu Item to Raw Ingredient

Your POS tracks the finished dish, but your bottom line depends on the ingredients. The Inventory Usage Management (IUM) module bridges this gap by adding a layer of intelligence to your sales data.

How it works:

When a customer orders a “Signature Burger,” IUM doesn’t just record one sale. It instantly references your master recipes in NetSuite to calculate exactly what was consumed: 1 brioche bun, 0.2 kg of ground meat, 1 slice of cheddar, and 15 ml of secret sauce.

The Result:

  • Automatic Recipe Explosion: Instantly convert sales units into raw material deductions.
  • True Stock Visibility: Know exactly how much flour, protein, or component stock remains without manual counting.
  • Accurate Replenishment: Reorder based on actual ingredient usage, not just rough estimates.
Auto-Deduction

Inventory is deducted automatically based on sales orders.

Cost Accuracy

Calculates precise margins by summing ingredient costs.

Smart Substitution

Automatically handles alternate items if primary stock is low.

Operational Flow

The IUM module acts as a bridge between your Point of Sale (POS) system and NetSuite’s backend inventory and financials. It translates finished goods sold at the register into raw ingredient consumption.

1. POS Sale & Integration

A customer purchases a finished product (e.g., a Chicken Sandwich). The POS system pushes this transaction to NetSuite via API, generating a Sales Order marked for IUM processing.

2. Recipe Lookup & Verification

The system identifies the Active Approved Recipe associated with the sold item. It then verifies inventory availability for all ingredients.

Alternate Inventory Logic

If a primary recipe item is unavailable (due to expiration, zero stock, or reservation), the system optionally automatically swaps it for the Approved Alternate Item. Costing and GL postings will immediately reflect the alternate item’s value.

3. Increase Inventory (Optional)

In a busy Outlet/Shop the team sometimes does not have a chance to update inventory as soon as it arrives. In the IUM module this will cause costing problems with zero cost. Optionally the module can temporarily increase inventory to cover this shortage. It can use a predefined cost so that the costing calculations are maintained.

4. Inventory Adjustment

A “Related Production Adjustment” record is created. This deducts the calculated recipe quantities from the specific Outlet/Shop inventory location.

5. Financial Posting

The system calculates the total cost of ingredients and updates the Sales Order line with margin data. The Sold Item inventory quantity is technically increased by the order (temporarily) while the raw materials are decreased, ensuring the GL balances correctly.

6. Sales Analysis & Optimization

Analyze the sales by item, item group, recipe type, location and use the information to determine the best mix and most profitable areas.

Real-time Margin Calculator

Interactive Demo
$

Recipe Explosion (BOM)

Revenue $12.50
Ingredient Cost (COGS) $3.45

Gross Margin

$9.05

Margin %

72.4%

These margin calculations are automatically pushed to the order line, allowing you to use SuiteAnalytics to determine your most profitable items and outlets instantly. You can then compare location to location, item to item, item groups or any field in NetSuite.

Financial Postings

Upon successful processing of the IUM transaction, the system automatically generates the corresponding General Ledger (GL) impact. This ensures that your inventory valuation and Cost of Goods Sold (COGS) are always accurate and reflect the exact cost of the raw materials consumed.

Account Type Account Name Account Source Debit Credit
Expense Cost of Goods Sold (COGS)
From Item Record COGS account
$6.20 –
Asset Inventory (Raw Materials)
From Item record inventory asset account
– $6.20
Total: $6.20 $6.20

The values shown above are dynamically calculated based on the sum of raw materials consumed during the Recipe Explosion. If the system utilizes an Approved Alternate Item, the GL impact will accurately reflect the cost of the alternate item used instead of the primary.

If you have the optional increase inventory adjustment switched on the system will increase the inventory of any items that are unavailable in the ingredient location. It will create a separate inventory adjustment. It will use the COGS and the Inventory asset accounts for the adjustment. It will get the increase cost from the field on the item.

Additional Features

Auto-Inventory Increase

If no inventory is present in the outlet (or it has not been recorded), the system can optionally be configured to automatically increase the inventory count in the outlet to allow the transaction to process without errors.

Profitability Reporting

Because margins are calculated at the line level during the transaction, reporting on profitability per item, per category, or per shop is available immediately via standard SuiteAnalytics tools.

Technical Considerations

IUM Control Panel Settings

Global automation configurations available for the environment.

Sales Order IUM Only
Auto Item Fulfilment
Auto Item Fulfillment and Invoice
Auto Item Fulfillment, Invoice and Payment(s)
Auto Invoice Only (without Fulfilment)
Auto Invoice and Customer Payment Only (without Fulfilment)

To enable the IUM module correctly, the Sales Order (SO) must be completed with specific technical parameters. The following fields must be completed by the POS interface to ensure successful processing:

IUM Payment Mode

custbody_ium_payment_mode

Must be selected as one of the following:

‘Paid’ ‘Credit’ ‘Multiple’

IUM Payment Method

custbody_ium_payment_method

Condition: If ‘Paid’ is selected above.

This field must be populated with the associated single payment method (e.g., Cash, Credit, Visa Card).

Sales Order Line Items

Production Status IUM

The field ‘Production Status IUM’ must be selected as ‘To Be Processed’.

IUM Payments Sublist

Tab: Custom > IUM Payments

Condition: If ‘Multiple’ is selected in Payment Mode.

The POS interface must supply the various payment methods under the order’s ‘Custom’ tab in the IUM Payments sub list. You must fill in the split payments here.

The sublist custom record is: customrecord_ium_payment

Example Scenario

Total Order: 2,500 PHP

  • Line 1: 1,000 PHP (Cash)
  • Line 2: 800 PHP (Visa Card)
  • Line 3: 700 PHP (Mastercard)

This will generate 3 distinct lines on the IUM Payments list.

The sum of the IUM payments sublist MUST match the sales order amount.

Customer Settings

Entity Configuration

The customer must be fully qualified and in the correct Subsidiary with the GL Accounts configured.

If the accounts use system defaults, ensure that the defaults are specified correctly in the global accounting preferences.

Discounts

Order & Line Discounts

Discount lines are not processed in IUM and if line discounts are needed then they need to be in the line total.

General Configuration

Order Status

Sales Orders must be approved orders.

FernSpeed Module Documentation

This module is a component of the FernSpeed SuiteApp—a specialized solution for the Food & Beverage and Natural Products industries, developed by Fern Consulting.

As an advanced expert-level module, its implementation may require specific environmental configurations to ensure optimal performance. For assistance with setup or to learn more about our capabilities, please visit us at fern.com.hk or contact our team directly at +63 977 722 9094.

Generated for 2026.2 Release (September 2026)